Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
2012 Chief Legal Officer Survey
An Altman Weil Flash Survey
INTRODUCTION
© 2012 Altman Weil, Inc. 2012 Chief Legal Officer Survey - i
2012 Chief Legal Officer Survey For the thirteenth year in a row, Altman Weil, Inc. has surveyed Chief Legal Officers (CLOs) on issues of importance in managing their corporate law departments. The purpose of these surveys is to capture current thinking of Chief Legal Officers and share the results with the legal profession, enabling both corporate law departments and law firms to benefit from the surveys. Survey Findings
Corporate law departments report that they are re-negotiating outside counsel fees, shifting work to lower-priced law firms, increasing in-house capacity, opting for alternative service providers and using new technology — all to develop a more cost-effective legal services model — according to over 200 General Counsel who participated in the Altman Weil 2012 Chief Legal Officer Survey. Chief Legal Officers are not waiting for law firms to change their business models. They are taking change into their own hands in 2012 to create a new internal value proposition. Cost Control and Efficiency
The survey asked Chief Legal Officers what they have done in the last 12 months to control costs – their highest management priority as reported in the 2011 Survey. The number one answer, from 71% of respondents, was to negotiate price reductions from outside counsel. In addition, 47% of law departments shifted work from law firms to in-house lawyer staff; 41% shifted law firm work to lower priced firms; and, 36% reduced the total amount of work sent to outside counsel. Ten percent of CLOs reported instituting a law firm convergence program. In addition to outside counsel cost management, law departments addressed internal cost issues in 2012. Sixty-three percent of departments improved the efficiency of their own procedures to cut costs; 36% shifted in-house work from lawyers to paralegals or other paraprofessionals; 35% used contract lawyers; and 25% of law departments outsourced some work to non-law-firm vendors to save money.
INTRODUCTION
© 2012 Altman Weil, Inc. 2012 Chief Legal Officer Survey - ii
The methods of cost control that proved most effective were negotiating price reductions and shifting work in-house, according to the survey. When asked what actions they had taken to improve internal efficiency in the last twelve months, CLOs identified greater use of technology tools as the most often used method, as well as the most effective. Other efficiency enhancers were greater use of paralegals and other paraprofessionals, project staffing with contract or temporary lawyers, outsourcing to non-law-firm vendors and project management training. Staffing and Budget
Survey results on law department staffing and spending reinforce findings on the shifting balance of work between law firms and in-house lawyers. In 2012, 46% of law departments increased their internal budgets, compared to 28% reporting a decrease. Additionally 38% of law departments report that they plan to increase their in-house lawyer workforce in the next 12 months, compared to only 7% of departments that plan to decrease the number of in-house lawyers. At the same time, 39% of law departments decreased their outside counsel budget in 2012, compared to 34% that increased it. This is the first time in three years that the survey has found more departments decreasing than increasing their law firm spend. In the next 12 months, 29% of law departments expect to decrease their use of outside counsel, compared to 14% that plan to increase outside counsel use. These aren’t enormous changes, and many departments still plan to maintain the status quo. But there is clear, incremental movement in how CLOs are managing their law departments. Inside – Outside Relationship
Asked how much pressure corporations are putting on law firms to change the value proposition in 2012, CLOs rated the pressure at a median 6 on a scale of 0 (no pressure) to 10 (intense pressure), up from 5 the previous year. CLOs continue to express deep skepticism about law firms’ willingness to change their service delivery model, rating firms’ seriousness about change at a median 3 on a 0 to 10 scale for the fourth year running. Chief Legal Officers have clear preferences when it comes to choosing law firms.
INTRODUCTION
© 2012 Altman Weil, Inc. 2012 Chief Legal Officer Survey - iii
When asked to rate which factors influence their selection of outside counsel, Chief Legal Officers identified ‘demonstrated understanding of your business/industry’ as the top factor and rated it 9.6 on a scale of 0 (no effect) to 10 (extremely positive effect). Other highly rated influencers were referrals from colleagues, rated 8.6; personal contacts, rated 6.7; and written material demonstrating a lawyer’s expertise, rated 6.1. Ten additional factors, including law firm websites, directory listings and social media activity, all rated under 5 on the 0 to 10 scale. The Survey
The Chief Legal Officer Survey has been conducted and published annually by Altman Weil, Inc. since 2000, most recently in September and October 2012. Two hundred and four responses were received for the 2012 survey, 15.7% of the 1,297 corporate law departments invited to participate. Demographic and budgetary data on responding law departments is included in the survey report. The survey report follows and is available online at www.altmanweil.com/CLO2012. About Altman Weil
Founded in 1970, Altman Weil, Inc. is dedicated exclusively to the legal profession. It provides management consulting services to law firms, law departments and legal vendors worldwide. The firm is independently owned by its professional consultants, who have backgrounds in law, industry, finance, marketing, administration and government. More information on Altman Weil can be found at www.altmanweil.com.
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 1
1. Law Department Workforce
Within the next 12 months do you plan to increase or decrease your Law Department workforce?
9.3% 68.6%
69.8%
52.9%
20.6%
25.1%
19.6%
7.4%
5.8%
3.1% 68.2%
37.7%
0% 20% 40% 60% 80% 100%
Support staff
Paralegals
Contract lawyers
In-House Lawyers
Not sure Decrease Remain the same Increase
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 2
TREND: Increase or decrease your Law Department workforce within 12 months
Law Department Lawyers
41.4%
5.7%
7.4%
52.9%
37.7%
4.0%
45.5%
9.2%
50.6%
38.1%
5.7%
2.0%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Not Sure
Decrease
Same
Increase
201220112010
Contract Lawyers
5.8%
19.6%
15.8%
9.7%
67.9%
6.7%
5.4%
72.0%
17.9%
4.8%
69.8%
4.8%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Not Sure
Decrease
Same
Increase
201220112010
Trend data compiled from 2010, 2011 and 2012 Chief Legal Officer Surveys.
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 3
TREND: Increase or decrease your Law Department workforce
Paralegals
6.4%
3.1%
68.2%
32.2%
5.3%
56.7%
5.8%
65.3%
26.6%
1.7%
25.1%
3.6%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Not Sure
Decrease
Same
Increase
201220112010
Support Staff
9.3%
68.6%
20.6%
18.3%
7.7%
65.1%
8.9%
8.1%
68.6%
15.1%
8.1%
1.5%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Not Sure
Decrease
Same
Increase
201220112010
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 4
2. Use of Outside Counsel
Within the next 12 months do you plan to increase or decrease your overall use of outside counsel?
TREND: Increase or decrease your Use of Outside Counsel
Use of Outside Counsel
6.4%
53.2%
12.2%
1.7%
57.0%
29.1%
45.1%
14.5%
34.1%28.6%
13.8%
4.4%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Not Sure
Decrease
Same
Increase
201220112010
4.4% 28.6% 53.2% 13.8%
0% 20% 40% 60% 80% 100%
Outside Counsel
Not sure Decrease Remain the same Increase
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 5
3. Shifting Work from Outside Counsel
If you plan to decrease your use of outside counsel, where will the work go? (Check all that apply.)
40.7%
15.3%
28.8%
74.6%
0% 20% 40% 60% 80% 100%
It's work we nolonger need to do
To non-law firmvendors*
To contractlawyers
To in-house legalstaff
*Non-law firm vendors – e.g. for e-discovery, document review, due diligence or legal research
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 6
4. Use of Non-Law Firm Vendors
What types of work have you outsourced to non-law firm vendors in 2012 that you used to give to law firms? (Check all that apply.)
4a. What is the approximate dollar value of the work shifted from law firms to non-law firm vendors in 2012?
56.8%
2.6%
5.2%
10.9%
26.0%
32.3%
0% 20% 40% 60%
None
Other
Legal research
Due diligence
Document review
E-Discovery
Value of 2012 Work Shifted from Law Firms to Vendors
Department Size Average Median
100+ lawyers $804,000 $582,000
51-100 lawyers $807,777 $500,000
31-50 lawyers $312,500 $100,000
16-30 lawyers $261,111 $250,000
2-15 lawyers $366,875 $100,000
1 lawyer $80,000 $80,000
All Departments $496,784 $300,000
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 7
5. Law Department Management - Efficiency
In last year’s survey, ‘efficient delivery of legal services’ was named as a top management priority. In the last 12 months, have you done any of the following to increase department efficiency? (Check all that apply.)
“Other” includes:
Better monitoring of outside counsel utilization
Focus on vendor selection practices / RFP processes
Transfer some work to compliance department and business units
Hiring JDs into paraprofessional roles, at paraprofessional salaries
Increase business-focused and CLE training
Implement continuous improvement projects
5.1%
12.8%
19.0%
25.6%
38.5%
46.7%
64.1%
0% 20% 40% 60% 80% 100%
Other
None
Project management training
Outsourcing to non-law firm vendors
Project staffing with contract / temporarylawyers
Greater use of paralegals and otherparaprofessionals
Greater use of technology tools
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 8
5a. Law Department Management - Efficiency
Of the efforts you’ve made to improve efficiency in the last 12 months, which one yielded the greatest improvement? (Select one.)
4.2%
4.2%
8.5%
20.6%
27.9%
34.5%
0% 10% 20% 30% 40%
Other
Project management training
Outsourcing to non-law firm vendors
Project staffing with contract / temporarylawyers
Greater use of paralegals and otherparaprofessionals
Greater use of technology tools
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 9
6. Law Department Management – Cost Control
In last year’s survey, ‘cost control’ was named as a top management priority. In the last 12 months, have you done any of the following to control law department costs? (Check all that apply.)
4.1%
2.6%
10.3%
11.3%
11.9%
25.3%
35.1%
35.6%
36.1%
40.7%
46.9%
62.9%
71.1%
0% 20% 40% 60% 80% 100%
Other
None
Instituted a law firm convergence program
Reduced in-house non-lawyer staff
Reduced in-house lawyer staff
Outsourced to non-law firm vendors
Used contract or temporary lawyers
Shifted in-house work from lawyers toparalegals or other paraprofessionals
Reduced total amount of work sent to outsidecounsel
Shifted law firm work to lower priced firms
Shifted law firm work to in-house lawyer staff
Improved efficiency of internal procedures
Negotiated price reductions from outsidecounsel
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 10
6a. Law Department Management – Cost Control
Of the efforts you’ve made to control costs in the last 12 months, which one yielded the greatest reduction? (Select one.)
1.1%
1.1%
2.2%
2.7%
3.2%
7.0%
8.1%
8.6%
8.6%
13.5%
21.1%
22.7%
0% 5% 10% 15% 20% 25%
Other
Reduced in-house non-lawyer staff
Instituted a law firm convergence program
Reduced in-house lawyer staff
Outsourced to non-law firm vendors
Shifted in-house work from lawyers toparalegals or other paraprofessionals
Reduced total amount of work sent to outsidecounsel
Used contract or temporary lawyers
Shifted law firm work to lower priced firms
Improved efficiency of internal procedures
Shifted law firm work to in-house lawyer staff
Negotiated price reductions from outsidecounsel
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 11
7. Please estimate the percentage increase or decrease to your Law Department budget from 2011 to 2012.
7a. INTERNAL BUDGET
3.0%
29.9%
9.0% 7.2%
18.6%
6.0%
26.3%
0%
10%
20%
30%
40%
50%
downover 10%
-6% to -10%
-1% to -5%
nochange
1-5% 6-10% up over10%
Res
pons
e ra
te
7b. OUTSIDE COUNSEL BUDGET
10.2%
16.2%
10.2%7.8%
26.9%
10.2%
18.6%
0%
10%
20%
30%
40%
50%
downover 10%
-6% to -10%
-1% to -5%
nochange
1-5% 6-10% up over10%
Res
pons
e ra
te
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 12
7. Indicate the approximate percentage increase or decrease to your Law Department budget from 2011 to 2012.
7c. VENDOR BUDGET FOR LEGAL MATTERS
3.2%
16.1%
2.6% 3.2%7.7%
1.9%
65.2%
0%
10%
20%
30%
40%
50%
60%
70%
downover 10%
-6% to -10%
-1% to -5%
nochange
1-5% 6-10% up over10%
Res
pons
e ra
te
7d. TOTAL LAW DEPARTMENT BUDGET
6.7%
27.4%
9.8% 9.1%
19.5%
7.9%
19.5%
0%
10%
20%
30%
40%
50%
downover 10%
-6% to -10%
-1% to -5%
nochange
1-5% 6-10% up over10%
Res
pons
e ra
te
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 13
TREND: Percentage increase or decrease to your Law Department budget
Change in Law Department Internal Budget Decreased Same Increased
Year % of Depts. % of Depts. % of Depts.
2009 to 2010 16.4% 20.4% 63.1%
2010 to 2011 17.1% 26.7% 56.2%
2011 to 2012 27.6% 26.3% 46.1%
Change in Outside Counsel Budget Decreased Same Increased
Year % of Depts. % of Depts. % of Depts.
2009 to 2010 29.7% 27.7% 42.5%
2010 to 2011 25.4% 28.9% 45.8%
2011 to 2012 39.0% 26.9% 34.2%
Change in Legal Matter Vendor Budget Decreased Same Increased
Year % of Depts. % of Depts. % of Depts.
2011 to 2012 12.8% 65.2% 21.9%
Change in Total Law Department Budget Decreased Same Increased
Year % of Depts. % of Depts. % of Depts.
2009 to 2010 28.8% 20.5% 50.6%
2010 to 2011 25.9% 18.4% 55.8%
2011 to 2012 34.1% 19.5% 46.3%
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 14
8. Law Department Budget Allocation
Please estimate the percentage of your total 2012 Law Department budget (internal and external legal spend) that each of the following components comprise. (Responses should total 100%.)
Definitions:
Internal expenditures: Department compensation and benefits; contract lawyers, facilities, technology and other operating costs
Outside Counsel: Total expenditures to outside law firms
Non Law-Firm Vendor: Expenditures for legal matters, i.e. e-Discovery, document review, legal research, etc.
3.9%
52.0%
44.1%
Non-Law Firm Vendor Outside Counsel Internal Expenditures
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 15
9. Chief Legal Officer – Management Time Allocation
Please estimate how your management time was allocated over the last 12 months. (Responses must equal 100%.)
Other functions: Top responses in order of frequency Managing other business departments
Risk management
Executive compensation matters
10.8%
8.4%
9.6%
13.6%
16.5%
22.4%
32.8%
0% 10% 20% 30% 40% 50%
Other (see below)
Government Affairs
Managing the legal function outsidethe US
Compliance
Board Issues
Advising executives / Participating instrategic corporation issues
Managing legal function in the US
% of CLO Time Spent on Function
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 16
10. E-Discovery Management
How does your law department handle e-Discovery matters? (Check all that apply.)
Other: Top responses in order of frequency No formal process
Work with internal IT staff
Limited/No need
9.2%
7.4%
22.7%
35.6%
41.1%
50.9%
0% 10% 20% 30% 40% 50% 60%
Other
We have an outside e-Discovery Counsel
We have an in-house e-Discovery Counsel
We use an outside law firm to manage our e-Discovery issues
We directly engage vendors for e-Discoveryservices
We have a formal e-Discovery programmanaged by a member of the law department
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 17
11. E-Discovery Management
How would you evaluate the knowledge and expertise of those handling e-Discovery issues for your department?
11a. IN-HOUSE
0 = Completely unsatisfactory 10 = Completely satisfactory
0.6% 0.0%2.5% 3.1%
5.6%
10.5% 11.1%14.2%
24.7%
17.9%
9.9%
0%
5%
10%
15%
20%
25%
30%
35%
0 1 2 3 4 5 6 7 8 9 10
IN-HOUSE LOW MODERATE HIGH
RATING 0 1 2 3 4 5 6 7 8 9 10
RESPONSE 22.3% 50.0% 27.8%
Median rating: 8
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 18
11. E-Discovery Management
How would you evaluate the knowledge and expertise of those handling e-Discovery issues for your department?
11b. VENDORS
0 = Completely unsatisfactory 10 = Completely satisfactory
3.5%
0.0% 0.9%2.6%
0.9%
8.8%
13.2%
19.3%
27.2%
18.4%
5.3%
0%
5%
10%
15%
20%
25%
30%
35%
0 1 2 3 4 5 6 7 8 9 10
VENDORS LOW MODERATE HIGH
RATING 0 1 2 3 4 5 6 7 8 9 10
RESPONSE 16.7% 59.7% 23.7%
Median rating: 8
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 19
11. E-Discovery Management
How would you evaluate the knowledge and expertise of those handling e-Discovery issues for your department?
11c. OUTSIDE COUNSEL
0 = Completely unsatisfactory 10 = Completely satisfactory
1.4% 0.7% 0.0%1.4% 0.7%
5.0%7.8%
20.6%
31.2%
22.7%
8.5%
0%
5%
10%
15%
20%
25%
30%
35%
0 1 2 3 4 5 6 7 8 9 10
OUTSIDE COUNSEL LOW MODERATE HIGH
RATING 0 1 2 3 4 5 6 7 8 9 10
RESPONSE 9.2% 59.6% 31.2%
Median rating: 8
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 20
12. Corporations Pressuring Law Firms to Change Value Proposition
In your opinion, in 2012 how much pressure are corporations really putting on law firms to change the value proposition in legal service delivery (as opposed to simply cutting costs)?
0 = No pressure 10 = Intense pressure
0.6% 1.2%
7.7%
11.3%
8.3%
17.9%19.0%
17.9%
12.5%
1.8% 1.8%
0%
5%
10%
15%
20%
25%
0 1 2 3 4 5 6 7 8 9 10
LAW DEPT PRESSURE LOW MODERATE HIGH
RATING 0 1 2 3 4 5 6 7 8 9 10
RESPONSE 47.0% 49.4% 3.6%
Median rating: 6
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 21
13. Law Firms Serious About Changing Service Delivery Model
In your opinion, in 2012 how serious are law firms about changing their legal service delivery model to provide greater value to clients (as opposed to simply cutting costs)?
1.8%
7.7%
21.4%23.2%
11.9% 12.5%10.1%
6.0%4.2%
0.0% 1.2%
0%
5%
10%
15%
20%
25%
30%
0 1 2 3 4 5 6 7 8 9 10
0 = Not at all serious 10 = Doing everything they can
LAW FIRM CHANGE LOW MODERATE HIGH
RATING 0 1 2 3 4 5 6 7 8 9 10
RESPONSE 78.5% 20.3% 1.2%
Median rating: 3
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 22
TREND: Corporations Pressuring Law Firms to Change Value Proposition TREND: Law Firms Serious About Changing Service Delivery Model
Pressure from Law Departments for Change
Average Median
2009 5.5 5
2010 5.3 5
2011 6.4 5
2012 5.5 6
Intent of Law Firms to Change
Average Median
2009 3.4 3
2010 3.7 3
2011 4.7 3
2012 3.8 3
Trend data compiled from 2009, 2010, 2011 and 2012 Chief Legal Officer Surveys.
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 23
14. Law Firm Service Improvements
Of the following service improvements and innovations, please select the three that you would most like to see from your outside counsel. (Select up to three.)
2.4%
8.3%
10.7%
11.9%
16.7%
26.2%
52.4%
53.0%
53.0%
58.9%
0% 10% 20% 30% 40% 50% 60%
Other
Effective e-Discovery services
Technology innovation
Preventative law strategies
Improved communication andresponsiveness
Alternative project staffing*
Improved budget forecasting
More efficient project management
Non-hourly based pricing structures
Greater cost reduction
*Alternative project staffing was defined for this question as greater use of contract lawyers or paraprofessionals.
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 24
15. Law Firm Selection Influencers
Please rate the following based on how effective they are in influencing your selection of outside counsel.
Rate on a scale of 0 to 10 in which 0 = No effect and 10 = Extremely positive effect.
LAW FIRM SELECTION INFLUENCER Average Rating
Median Rating
Demonstrated understanding of your business / industry 9.6 9
Referrals / Recommendations from colleagues 8.6 8
Personal contact: Visits / phone calls / personal notes 6.7 6
Written material demonstrating lawyer’s expertise 6.1 6
Free seminars, webinars, CLE training for your law department 4.9 4
Branding as a full service firm 4.6 3
Industry events: Sponsorships / presentations / attendance 4.1 2
Website content / Firm brochures / Advertising 3.6 2
Directory listings and ratings (traditional and online) 3.3 2
Membership in law firm networks 3.2 2
Committee work, Community involvement, Board memberships 3.2 2
Direct mail / email communications about a firm 2.9 2
Social media activity: LinkedIn / Twitter / Facebook / Other 2.3 0
Invitations to social events / sporting events / meals 2.2 0
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 25
15. Other influencers Top responses in order of frequency: Subject matter expertise
Track record of success
Prior relationship
Low cost
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 26
16. Outside Counsel Succession Planning
As the Baby Boom generation begins to retire, some of your key relationships with outside counsel may be affected. Please indicate which of the following statements reflects your law department’s position on outside counsel succession planning.
Other: Sample comments We do not over-rely on particular counsel and have alternatives for key matters
We’ve initiated some of our law firms on succession planning and have learned that most are asleep on this key issue!
3.6%
4.2%
19.6%
32.1%
40.5%
0% 10% 20% 30% 40% 50%
Other
Our outside counsel have approachedus about succession plans for key
relationship partners.
We have initiated conversations withoutside counsel about their succession
plans for key relationship partners.
Succession planning is not an issue inour key outside counsel relationships.
We haven't thought about outsidecounsel succession planning.
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 27
17. CLO Management Priorities
What is your number one Law Department management priority for 2013? (open ended question)
MANAGEMENT PRIORITIES 2012
RESPONSE RATE
2011 RESPONSE
RATE
Cost control and reduction 23.5% 24.1%
Efficiency 16.7% 16.0%
Quality and value of legal services 13.0% 12.1%
Lawyer staffing issues 9.9% 7.0%
Supporting business goals of the organization 8.0% 12.3%
Compliance 4.3% 10.7%
Convergence 3.7% 0%
Representative comments Implementing better processes and controls to manage costs and measure the
effectiveness of outside law firms.
Leveraging in-house capabilities across the entire department to reduce costs and improve quality of service.
Cutting costs--convergence of law firms, stricter budgeting procedures and measuring law firm productivity/results.
Greater efficiency through reduced outside counsel costs and matching work to the appropriate level of talent internally
Transforming key processes to make them more integrated, efficient, and effective globally
2012 CHIEF LEGAL OFFICER SURVEY
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 28
Handling the volume of work in an improving business environment with only a modest increase in staffing.
Being cost effective while providing high quality service
Delivering valued priced, high quality, business savvy legal services
Effectively using in-house counsel to provide the best value for the company.
Elevating our ability to manage our work (both inside and through outside counsel) to the same level as our ability to render professional services.
Ensuring our external and internal resources are utilized and deployed efficiently, strategically and proactively in order to extract the highest and best value and provide a competitive advantage in key areas.
More effectively leverage our in house capabilities.
Developing management expertise of potential managing attorneys
Succession planning within the department and better use of junior personnel
Provide solution-oriented, commercially savvy, timely legal support
Serving as strategic partner to support significant growth projects while managing costs
Driving business results while protecting the company
Assisting our company and business partners in navigating regulatory change with minimal impact to strategic business and growth plans
Anticipating and effectively handling emerging and changing regulatory priorities
Consolidating external legal providers to increase quality/responsiveness and reduce inefficiency.
Continue on the convergence path, fewer law firms, smarter spend, less cost overall
2012
Chief Legal Officer Survey Participant Demographics
2012 CLO SURVEY – PARTICIPANT DEMOGRAPHICS
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 29
1. How many in-house attorneys are in your department (in all locations)?
10.8%
46.4%
13.3%
9.0%
19.3%
3.0%
0% 10% 20% 30% 40% 50%
One
2 to 15
16 to 30
31 to 50
51 to 100
over 100
1a. Are any resident outside of the US?
1b. If yes, how many attorneys in the department are resident outside the US?
54.8%
15.5%
19.0%
10.7%
0% 10% 20% 30% 40% 50% 60% 70%
One
2 to 15
16 to 50
over 50
50.6% 49.4%
0% 20% 40% 60% 80% 100%
Lawyers outside US
Yes No
2012 CLO SURVEY – PARTICIPANT DEMOGRAPHICS
© 2012 Altman Weil, Inc. An Altman Weil Flash Survey - 30
3. What are your organization’s annual revenues?
13.6%
22.8%
35.2%
13.6%
14.8%
0% 10% 20% 30% 40%
Under $1B
$1B to $5B
$5B to $10B
$10B to $20B
Over $20B
4. Is your organization:
Government Legal Agency,
1.8%
Partnership, 1.2%
Other, 3.6%
Not-for-Profit, 3.0%
Private, 15.0%
Public, 75.4%
© 2012 Altman Weil, Inc. 2012 Chief Legal Officer Survey
Contact Altman Weil 3748 West Chester Pike, Suite 203 Newtown Square, PA 19073 (610) 886-2000 www.altmanweil.com [email protected]